Chart that may make $JSERCL @RCLFOODS a little cheerier this #kleinthursday Sugar price 10.8% in past weeks as surging oil price sees greater demand for sugar for conversion into ethanol as a blending agent into fuel Granted locally in #SouthAfrica there are our own issues The sugar tariff has not been adjusted in some years meaning cheap imports are surging disrupting local suppliers out of the market The bust of Tongaat Hulett saw the sugar levy payments by 'other' hurt & the over-payers are awaiting their long-standing refunds The stronger rand also hit ... but the recent slip in the rand (16.89 as I write or YTD -1.43% vs US$) may now be assisting NOT a reason to rush out and buy #RCL but an interesting titbit as global softs rally (on ethanol) and surging field crop production input costs that may see significant crop changes into 2026 and 2027 (= higher prices)

Recording a segment on @BusinessDayTV later today discussing $JSEADH ADvTech, $JSEGND Grindrod, $JSERCL RCL Foods

In a large acquisition 9% of current MCap, $JSERCL @RCLFOODS acquires the pet business of privately-owned Simrose for R695 million #RCL is very strong in petfood via Bobtail, Catmor, Canine Cuisine, and Ultra Pet and its a R1bn sales catagory Simrose brings into the portfolio the Bob Martin supplements & pet brand, Husky per foods and pet treats such a Beeno This is an astute and well-fitting deal. The price equates to a EBITDA of 7.7x with a profit of R90m Given in last results, the sugar assets of #RCL made earnings and HEPS sour with an expectation from management that no recovery in sugar was coming in 2026, the acquisition to bolster a high growth consumer category will shave the % of earnings from more volatile commodities Despite consumers tightening their belts in South Africa, the pet category has seen good growth with @WOOLWORTHS_SA and @Shoprite_SA moving into the categories. Consumer will always pay to give "fluffy" good food, treats and toys ... and this expansionary category move by #RCL is a good move On the transaction #RCL was down -0.24% to 815 cents despite a firmer market. Vols was 4x normal volume. year-to-date #RCL is -19.11% with the stock bumping along 52-week lows Investors probably more concerned about the competitive landscape in bread and that sour sugar division #RCL is cheap but its cheap for a reason

I spend all morning on back to back online meetings $JSEITL Itsltile, $JSESHG SeaHarvest, $JSERCL RCL Foods & I pop out to read & get a coffee before my next two online meetings … & the coffee shop of sin cabinet confronts me 😜

$JSERCL … traded @ 897c prior to closing-auction, got hiked ⬆️ to 1012c in auction … 😳. Many stocks displayed curious moves during closing-auction (all on rel large volumes), but none so radical as RCL. Stand to be corrected … triple witching day ?🤷‍♂️

Year end to June 2025 trading update from mid-cap food counter $JSERCL @RCLFOODS HEPS guidance is 140 cents ( 9.6%) to 150 cents (17.5%) from the previous 127.7 cents per share #RCL states groceries did well but weakness in the sugar division lower sugar prices (global prices have been hit) led to the lower than anticipated earnings growth Sugar (had) been the #RCL sweet spot but sugar globally had had a tough period with current prices at US$0.16 a pound from a star of 2025 price of US$0.175 and a high of US$0.20 a pound (see chart) @smalltalkdaily wrote a company review on #RCL in March R10.00 @FinancialMail with a HOLD recommendation ..... where we indicated softening sugar trends & better groceries hopes, but the value-based reset of the counter has yet to be evident despite the mid FPE of 6.6x

Shares on the JSE ALSI that have remained flat or declined since the recent market bottom on April 4th: Aspen $JSEAPN -17.2% Afrimat $JSEAFT -5% DRDGOLD $JSEDRD -2.8% Italtile $JSEITE -0.8% RCL Foods $JSERCL 🍩% Sometimes the idiosyncratic risk outweighs the broad market rally

With the end of March ahead the end of month addition of the Investors Monthly will be added to the back pages of @FinancialMail Extra copy on company updates are now included in this end of month #FM issue @smalltalkdaily contribution this month is five stocks, namely $JSEMFL Metrofile, $JSEMFL Mustek, $JSERCL RCL Foods, $JSERBO Rainbow Chickens and $JSESUR Spur Corporation Get your copy for the extra company reviews from all contributors

Interim results out from South Africa's 2nd largest chicken producers (c.4.5m birds per week) and HEPS at mid end of revised higher earnings guidance Granted, can't really compare as $JSERBO Rainbow Chickens was carved out of $JSERCL RCL Foods so comparatives are moot HEPS 35.64 cents per share 1348.8% Good recovery from the core chicken operation moving back into the black on farming and mix. EBITDA R362.419m 227.7% EBITDA margin 5.2% 3.5 points (from 1.7%) Still, for a food producer 5.2% is not enough but that's the cyclical nature of poultry stocks and the pricing power currently of the big retailers Animal feeds had a solid six months EBITDA R211,764m 52.6% EBITDA margin 5.8% 1.9 points (from 3.9%) Small-to-mid cap market has been mauled the past week. Pretty much the entire domestic sector in the industrial space has been sold-off. Are investors just taking a view on economy / Government South Africa Inc ? Or is it pre-budget jitters given the last comedy show ? Let's see what happens on VAT and IF Government widens the VAT exempt basket. The poultry sector has made representation for frozen chicken pieces (IQF) and offals to be exempted #RBO presentation at 9.00am

Busy results day with $JSEITL Italtile, $JSESHG Sea Harvest & $JSERCL RCL Foods with direct one-on-one management meetings with all three executive teams A lot of information to process & lots of handwritten notes Tomorrow, @smalltalkdaily starts the same with personal meetings with $JSEMF Metrofile, $JSECOH Curro Holdngs and $JSESUR Spur Corporation Varied range of small-to-mid caps I cover in my universe

As I work through $JSERCL RCL Foods, $JSERBO Rainbow Chickens & $JSECAA CA & Sales results this morning, I have to listen to my Zoom webinars with this one 🐶💤 snoring 😴

$JSERBO Rainbow Chickens listed on @JSE_Group on Wednesday 28th June via an un-bundling from $JSERCL RCL Foods From an opening price of 365 cents it ran fast (it was puffed I believe) to 475 cents & I warned on this at the time on here X Twitter Even my 11-page listing note on #RBO issued on day of listing warned "there is time to invest into Rainbow" I note today #RBO is trading at 355 cents a new pre-listing low I have a special feature on the poultry sector with a comment on #RBO this this week's issue of @FinancialMail Investors Monthly. I like the business mix within #RBO but there is no rush to invest was my opinion

Rainbow Chickens listing note @smalltalkdaily I have covered the domestic poultry sector for some 20-years. For years now only $JSEARL Astral Foods was @JSE_Group listed Few will remember Country Bird Holdings, Sovereign Foods (both now owned by private equity) and of course Rainbow Chickens was listed before it got swallowed into an agglomerated #RCL In late-June $JSERCL RCL Foods un-bundled Rainbow Chickens. I wrote this 11-page note on the company including some of the pre-listing slides At 440-cents trading today I thought I'd share that note as background information drive.google.com/file/d/1gJn…

New 52-week high for $JSERCL @RCLFOODS as shareholders cheer the imminent un-bundling on July 1st and separate @JSE_Group listing of Rainbow Chickens Question now for #RCL, with Vector (gone), Rainbow (going) will sugar be next - even though its currently the most profitable part - but sugar remains an agricultural; swing commodity where #RCL investors may wish a great focus on groceries The evolution of #RCL may not yet be over. It's moved at a glacial place but has it now gained momentum ?

Ahead of the unbundling from $JSERCL RCL Foods, just had a meeting with Rainbow Chickens management to discuss the business, environment & life ahead as a separate entity I will follow the @JSE_Group listing on July 1st with keen interest given my long standing works in the poultry sector

Last week of June will be a super busy one @smalltalkdaily covering all the following & I have direct engagement with all management …. none of this just reading @JSE_SENS & commenting as many on here just do $JSEART Argent Industrial $HDC Hudaco results $JSEIVT Invicta Holdings results $JSENPK Nampak results $JSEPPC PPC Group results $JSESEP Sephaku Cement results Also the pre-listing roadshow of Rainbow 🌈 Chickens spin-out of $JSERCL RCL Foods Eventful & diverse week indeed

Thanks @BDliveSA for the copy on the unbundling of Rainbow Chickens from $JSERCL RCL Foods Back in April I wrote in a special feature in @FinancialMail Investors Monthly I made specific comment on #RCL and Rainbow with my belief that Remgro will exit its 80% stake in time...with a natural home being the PIC funded and backed Daybreak Foods. Let's see if my crystal ball works again A Daybreak Rainbow tie up makes sense. They get super scale & Daybreak gets the feed mills & vertical integration it needs. Daybreak needs it more than Rainbow... but its just my permutation as I don't believe #REM wants to own 80% of Rainbow until the end of time RCL Foods’ shares jump as shareholders approve Rainbow’s listing businesslive.co.za/bd/compan… via @BusinessLiveSA

Sugar prices not so sweet currently & very volatile as world's largest producer Brazil ramps up production for ethanol Wonder what this does to $JSERCL RCL Foods where their sugar division in the past six months had a stand out period, not looking so sweet in Q1 2024 re: price Sugar Prices Under Pressure as Brazil Ramps Up Sugar Production barchart.com/share/news/2453… via @Barchart

The meeting I'm participating in at 2.00pm with management of $JSERCL RCL Foods should be an interesting one given the news yesterday on the "fly free little birdy" of Rainbow Chickens I've many questions to ask on this, let's see if I gain my replies. Mag't are usually pretty forthcoming at #RCL

H1 2023 results from $JSERCL @RCLFOODS was at the very upper end of their guidance with HEPS 52.6% to 81.2 cents per share The making of that surge was Sugar, profits rose 35% to R662.3m due to higher sugar prices like-on-like. That may reverse in H2 given the recent sugar price move (see enclosed sugar chart) Rainbow Chickens Poultry saw a 465% rise in profit R286.8m though margin remains a slim 3.9%. Does @the_dtic Minister really believe poultry companies make fat margins? He's off his clucking head ! As I commented on February 28th & before, I anticipated that #RCL "would set Rainbow free" & indeed they announce a separation & separate @JSE_Group listing (I'd not rush into that like a headless chicken quite yet) The market should like the removal of the volatile & highly cyclical poultry business from #RCL. The market wants a food company and #RCL was hardly that; an odd amalgamation of logistics, sugar, poultry & groceries Will sugar (the old TSB) will that be the next to go? It looks clear it may be if management want the #RCL rating to improve Overall a fair set of results remarkably by corporate action at last on key parts of the business that has troubled the market for some years